Champion Breweries to raise up to 5B shares, targets US$29.4M in equity and debt capital 

NIGERIA – Champion Breweries Plc has announced plans to seek shareholder and regulatory approvals to issue up to 5 billion additional ordinary shares of 50 kobo each. 

The capital raise may take place in either the Nigerian or international capital markets, through public offerings, rights issues, or other approved methods. 

According to the company, the pricing for the new shares will be determined via book building or other valuation mechanisms sanctioned by the board and regulators.  

The proposed fundraising is aimed at enhancing financial flexibility to pursue growth opportunities, upgrade operations, strengthen working capital, and support long-term sustainability goals. 

The board also seeks approval to accept any oversubscription arising from the capital raise and to increase the company’s share capital by the exact number of shares issued.  

This proposal updates a previous shareholder resolution passed on December 4, 2024, which approved the issuance of 1.58 billion ordinary shares. 

Champion Breweries stated that, upon completion of the capital raise, its board of directors would be authorised to allot the new shares formally. The company will also amend its Memorandum and Articles of Association to reflect the revised share capital. 

To facilitate the transaction, the board will be empowered to undertake all necessary ancillary activities. These include executing relevant agreements, appointing professional advisers, and securing regulatory approvals.  

Shareholders will also be asked to ratify any actions already undertaken by the board in relation to the proposed capital raise, providing a solid legal foundation for the process. 

In addition to the share issuance, Champion Breweries is also seeking approval to raise up to N45 billion (US$29.4M) in debt capital. This may be executed directly or through a special purpose vehicle (SPV) and could involve the issuance of convertible or non-convertible instruments such as notes, hybrid securities, or green bonds. 

The board noted that the debt capital may be raised in standalone tranches or bundled issuances, both locally and internationally, depending on market conditions and the company’s funding requirements. 

Champion Breweries has shown strong market performance in 2025, recording a 162.5% gain in its share price in the first half of the year. This makes it one of the top 10 performing stocks in both the consumer goods sector and the broader Nigerian stock market. 

The proposed capital raise is expected to strengthen the company’s financial position and potentially boost its stock market performance further. 

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